LACK OF BUSINESS ISN'T ALWAYS THE PROBLEM Written by C.J.Hayden
When you're just starting out in business, it's a safe bet that you need more clients. But what if you have been up and running for a while, and you're still not making as much money as you would like? You may be in habit of thinking that attracting new clients is answer, but this isn't always case. There are many reasons why a professional services business might not be earning enough, but they typically fall into four categories: not enough revenue, not enough profit, not enough customers, or not enough time. Start by looking at your gross revenue -- total amount your customers pay you over course of a year. How does it compare to others in same line of business? Ask some trusted colleagues or check with your professional association for any statistics they may have. What percentage of your gross revenue remains after you cover cost of sales? This is your gross profit. As a service business, you may have no cost of sales. If, however, you are selling books, tapes or software, or accepting credit cards, your inventory cost and credit card fees need to be deducted from your earnings before making other calculations. Now deduct your business expenses from your gross profit. What percentage of gross profit remains? Is this a typical percentage for your industry? If you can't gather comparable data from colleagues, your professional association, or a published source like Dun & Bradstreet's "Industry Norms & Key Business Ratios," compare your profit margin (net income divided by gross profit) to a desired goal of 70%. LOW REVENUE - If your gross revenue seems low for your industry, your profit margin is at least 70%, and you have about as many customers as you can comfortably serve, concentrate on increasing your revenue, rather than trying to improve your profit margin or bring in new customers. Consider raising your rates, which may mean finding a market that is willing to pay more. Look for customers who will give you higher dollar volume contracts or place larger orders. Think about hiring more administrative help, which would free up more of your time to charge out at professional rates. You should also work to increase your passive income by selling products created by you or others, reselling some of your existing work, or licensing a process you have developed.
| | The Markets During Kennedy's AssassinationWritten by John Finger
Money Matters The Markets During Kennedy’s Assassination November 22, 2003 Presented by The Money Management Firm, Inc. www.moneymanagementfirm.com eBay ID: optionsforyou _________________________________________ New Improved Lawnmowers One day a lawyer was riding in his limousine when he saw a guy eating grass. He told driver to stop. He got out and asked him, "Why are you eating grass?" The man replied, "I'm so poor, I can't afford a thing to eat." So lawyer said, "Poor guy, come back to my house." The guy then said, "But I have a wife and three kids." The lawyer told him to bring them along. When they were all in car, poor man said, "Thanks for taking us back to your house, it is so kind of you." The lawyer said, "You're going to love it there, grass is a foot tall." _________________________________________ Fifty-eight percent of Americans weren’t born when President John F. Kennedy was assassinated on November 22, 1963. I’m in minority; I can remember his funeral. The stock market had been in rally mode since end of Cuban Missile Crisis in October 1962. From that time until end of October 1963, Dow Jones Industrial Average gained 35%. Then, in early November, stocks started falling, due in large part to coup in South Vietnam. The United States’ involvement in that war was just starting to heat up; we had sent thousands of military advisors (but no combat troops) to country. Many former administration officials say Kennedy didn’t like South Vietnam’s leader and didn’t lift a finger to help him when coup started. That set tone for much of month.
|
